The General Circular No. 08/2023 dated August 23, 2023, issued by the Ministry of Corporate Affairs (MCA), has introduced the relaxation regarding late filing of certain LLP Forms.
Let’s understand the latest notification of Late Filing of LLP Forms Relaxation announced so that you can also get the benefit of it.
LLPs Face Challenges in Submitting Forms
Businesses having LLP Registration need to comply with law and submit certain forms as part of their returns filing.
The Government has received reports that some Limited Liability Partnerships (LLPs) are encountering challenges when attempting to submit certain forms.
- Form-3 which pertains to LLP Agreements and related modifications,
- Form-4 which involves notifying partner appointments, changes, and consents
- Form-11 which is the Annual Return of the LLP.
These challenges stem from a variety of reasons, including discrepancies in the core information stored in the Ministry’s electronic registry.
Consequently, this situation has led to a lack of updates to the information and records within the electronic registry.
MCA Waives Additional Fees for LLPs
- The Ministry of Corporate Affairs (MCA) has decided to waive the additional fees for Limited Liability Partnerships (LLPs) that could not file Forms 3, 4, and 11 within the due date.
- This is a one-time relaxation that is being given to LLPs as part of the government’s efforts to promote ease of doing business.
- The MCA has waived the additional fees for these forms for LLPs that could not file them within the due date due to certain difficulties.
- These difficulties could be anything from technical problems to administrative issues.
- The waiver of additional fees is applicable for events that took place on or after January 1, 2021.
- LLPs can file these forms without additional fees from September 1, 2023 to November 30, 2023.
Important Information for LLPs Late Filing Form-3, Form-4, and Form-11
- The Form-3 and Form-4 will be processed quickly in a special way (STP), except if you’re changing business activities. People involved should submit these forms in order, starting with older dates, to update information correctly.
- When you fill out these forms, they will already have some information from your company’s existing data. You can change this information if needed. It’s your responsibility to make sure the information is correct. If there are mistakes, the designated partner and the professional who signs the form might face legal consequences.
- If the events happened on or after January 01, 2021, you won’t need to pay extra fees when filing Form-3 and Form-4. But for events before that date, small LLPs need to pay double the normal fee, and other LLPs need to pay four times the normal fee.
- The waiver of an additional fee for submitting Form-11 will take effect from the financial year 2021-22 onwards.
- Form-11 for preceding years (prior to the financial year 2021-22) can be lodged by small LLPs with a supplementary fee of double the standard filing fee and by other than small LLPs with a supplementary fee of four times the normal filing fee.
- You can file these forms from September 01, 2023, to September 30, 2023 as per notification. Don’t miss these dates.
In light of the recent announcement regarding the relaxation on late filing of LLP forms, seizing this opportunity can greatly benefit your business. Don’t miss out on the advantages and reach out to us today to make the most of this latest notification.
Moreover, If you want any other guidance relating to Late Filing of LLP Forms Relaxation Announced, please feel free to talk to our business advisors at 8881-069-069.
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